GUIDE · UPDATED
How to find motivated sellers: eight lead sources for wholesalers
A motivated seller is an owner who values a fast, certain sale over the highest possible price. Finding them is the first job in wholesaling, and it is the one most new wholesalers underestimate.
This guide covers who these sellers are, where the signs show up in public records, eight ways to reach them, and how to choose the one or two channels you can keep up every week.
THE SHORT VERSION
- Motivation comes from a situation, not from a house: an inheritance, a vacancy, a tax bill, a tired landlord.
- Most of those situations leave a trace in public records.
- Pick one or two channels you can run every week. Consistency does more than variety.
- The lead is only worth something if you respond quickly and keep following up.
Who a motivated seller is.
Motivation is a situation. The owner has a reason to sell that matters more to them than getting the last dollar, and often the house needs work a retail buyer would not accept. Treat every one of these people with respect: many are dealing with something hard.
| SITUATION | WHERE IT SHOWS UP |
|---|---|
| An inherited house | Probate court filings. |
| Unpaid property taxes | The county’s tax delinquency list. |
| Missed mortgage payments | Pre-foreclosure notices filed with the county. |
| A landlord who wants out | Owners whose mailing address is somewhere else, and eviction filings. |
| A vacant or neglected house | Code violation records, and what you see from the street. |
| Long ownership with little debt | Deed and mortgage records. |
Eight ways to find them.
Public record lists
Probate, tax delinquency, pre-foreclosure and code violation lists come from the county, sometimes free and sometimes through a data service. They are the raw material for mail, calls and door knocking.
Driving for dollars
Drive a neighbourhood and note the houses that look neglected or empty, then look up the owners. It costs time, not money, and it finds properties that are on no list.
Direct mail
Send postcards or letters to a list of owners and wait for the phone to ring. The seller contacts you, which keeps the conversation warm from the first word.
Online ads
Search and social ads send owners who are already looking to sell to a page with a form or a phone number. It costs more per lead, and the leads are asking to be contacted.
Your own website
A simple page that explains what you do and collects an address and a phone number gives every other channel somewhere to send people.
Referrals
Agents, probate and divorce attorneys, property managers, contractors and other investors all meet owners who need to sell. Tell them exactly what you buy.
Calls and texts
Reaching owners by phone is fast, and it is the most regulated channel. Federal and state rules cover who you may call or text, when, and with what technology. Learn them before you start, or use channels where the seller contacts you first.
Signs
Roadside signs still produce calls in some markets. Check local rules first, because many cities restrict or ban them.
On calling and texting
The Telephone Consumer Protection Act, the National Do Not Call Registry and state laws all apply to marketing calls and texts. This guide is general information, not legal advice. Ask an attorney before you run a calling or texting campaign.
Choose one or two channels.
Every channel trades money for time. Start with what you have more of, and add a second channel only when the first runs every week without you thinking about it.
| CHANNEL | MOSTLY COSTS | HOW THE SELLER ARRIVES |
|---|---|---|
| Driving for dollars | Time | You reach out after finding the owner. |
| Referrals | Time | Someone they trust sends them to you. |
| Direct mail | Money | They call you. |
| Online ads | Money | They fill in a form or call you. |
| Calls and texts | Time and compliance | You contact them. |
Stack your lists.
List stacking means comparing several lists and finding the owners who appear on more than one. An owner who lives out of state, owes back taxes and has a code violation has three reasons to sell, not one. Put your effort there first, so fewer of your letters and calls are wasted.
When a seller responds.
A response is the most valuable moment in the whole process, and it is short. A Harvard Business Review study found that firms which tried to reach a new lead within an hour were nearly seven times as likely to qualify it as firms that waited even an hour longer.
- Answer or call back fast, the same hour if you can.
- Ask about their situation, their timeline and the condition of the house before you talk about price.
- Book a time to see the house.
- Keep following up. Many sellers are not ready on the first call and are ready a month later.
Track every source.
Record where each lead came from. After a few months you will know what each channel costs you per lead and per signed contract, and you can move money and time to the one that works in your market. Without that record, every channel feels like it might be working.
FROM THE PUBLISHER
Where ARIA fits.
ARIA’s Lead Finder surfaces off-market seller leads drawn from public sources, and its lead link drops form and ad leads straight into your pipeline with the source attached. On the Pro and Max plans, Aria calls the sellers who asked to hear from you, qualifies them and books the walkthrough, and she answers calls to your ARIA number. ARIA does not have driving for dollars today. It is planned for ARIA’s companion mobile app. ARIA does not send direct mail today. It is on the roadmap.
FAQ
Questions, answered.
What is a motivated seller?
An owner who cares more about selling quickly and with certainty than about getting the highest price. The reason is usually a situation, such as an inherited house, a vacancy, back taxes or a rental they no longer want, and often a house that needs repairs.
What is the lowest-cost way to find motivated sellers?
Channels that cost time instead of money: driving for dollars, county public records and referrals. They are slower to scale than mail or ads, and they suit someone starting with a small budget.
How many leads does it take to get a wholesale deal?
It varies widely by market, by channel and by how well you follow up, so any single number would mislead you. Track your own leads, appointments and contracts by source for a few months and you will have a figure you can plan around.
What is list stacking?
Comparing several lists of property owners and finding the people who appear on more than one. Each list marks a reason to sell, so an owner on two or three lists is more likely to be motivated than an owner on one.
What is an absentee owner?
An owner whose mailing address is different from the property’s address. They do not live in the house, so it is a rental, a vacant property or an inheritance, and they are often more open to selling than someone who lives there.
Can I call or text property owners I find in public records?
Marketing calls and texts are regulated by the Telephone Consumer Protection Act, the National Do Not Call Registry and state laws, and the rules depend on the technology you use and whether the person agreed to be contacted. This is general information, not legal advice. Ask an attorney before you start.
KEEP READING
More guides.
See ARIA work a lead.
Free for 7 days. Cancel any time.